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Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $ 1 5 0 , 9 0 0
Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $ of equipment, having a year useful life: Year Net Income Net Cash Flow Year $ $ Year Year Year Present Value of $ at Compound Interest Year a Assuming that the desired rate of return is determine the net present value for the proposal. Use the table of the present value of $ presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Line Item Description Amount Present value of net cash flow $fill in the blank Amount to be invested fill in the blank Net present value $fill in the blank b Would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of
Net present value method
The following data are accumulated by Waiola Company in evaluating the purchase of $ of equipment, having a year useful life:
Year Net Income Net Cash Flow
Year $ $
Year
Year
Year
Present Value of $ at Compound Interest
Year
a Assuming that the desired rate of return is determine the net present value for the proposal. Use the table of the present value of $ presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.
Line Item Description Amount
Present value of net cash flow $fill in the blank
Amount to be invested fill in the blank
Net present value $fill in the blank
b Would management be likely to look with favor on the proposal?
because the net present value indicates that the return on the proposal is
than the minimum desired rate of return of
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